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Apple’s app rules breach DMA, EU finds

The European Commission has told Apple that it believes the rules governing the technology giant’s App Store are in breach of the Digital Markets Act (DMA).

The commission said that the rules prevented app developers from steering consumers to alternative channels for offers and content.

The EU body has also opened a new investigation into Apple over concerns that its new contractual requirements for third-party app developers and app stores “fall short of ensuring effective compliance with Apple's obligations under the DMA”.

Business terms

The commission has set out its preliminary findings on the App Store, arguing that Apple’s business terms that govern its relationship with app developers are in breach of the DMA in three areas:

• Apple’s business terms prevent developers from steering their customers, as they impose restrictions in areas such as pricing information and the promotion of offers available on alternative distribution channels,
• Apple allows steering only through a link in a developer’s app that redirects the customer to a web page, a process that the commission says is subject to “several restrictions”,
• The fees charged by Apple for facilitating the initial acquisition of a new customer by developers “go beyond what is strictly necessary for such remuneration”.

The commission stresses that its findings do not prejudice the outcome of the investigation, as Apple will now be able to reply to the EU body’s arguments.

Fee under scrutiny

The new investigation opened today (24 June) focuses on Apple's new contractual terms for app developers.

In particular, the probe will look at Apple's ‘Core Technology Fee’, under which developers of third-party app stores and third-party apps must pay a €0.50 fee per installed app.

It will also examine the steps that an iPhone user has to undertake to successfully complete the download and installation of alternative app stores or apps.

The DMA designated seven large technology platforms as ‘gatekeepers’, which are subject to additional obligations.

Competition commission Margrethe Vestager said that steering was key to ensure that app developers were less dependent on gatekeepers’ app stores and for consumers to be aware of better offers.

“The developers’ community and consumers are eager to offer alternatives to the App Store. We will investigate to ensure Apple does not undermine these efforts,” she concluded.